San Jose, California, November 9, 1995 -- Cisco Systems, Inc., (NASDAQ:CSCO), the leading global supplier of internetworking solutions, todayreported its first quarter results for the period ending October 29, 1995.Net sales for the first quarter were $710.2 million, compared to lastyear's results for the same period of $392.9 million, an increase of81%. Net income was $168.7 million, or $.59 per share, versus $98.8 million or$.37 per share during the first quarter last year, an increase of 71% and59% respectively.
"We are pleased to report a solid financial performance for Cisco's firstfiscal quarter of 1996," said John Chambers, president and CEO of Cisco."The highlights of this quarter include the introduction of a new businessstrategy to address emerging high-growth markets, key productintroductions, and acquisitions which strengthen Cisco's leadershipposition in both the switched internetworking environment and access arena.
"The market for internetworking solutions is expanding from complexcorporate environments, where Cisco has traditionally played a leadershiprole, to small- and medium-sized businesses and professional home offices,"said Chambers. "This quarter we marked an expansion of Cisco's presence inthese markets by launching the CiscoPro product line, designed todeliversimplified networking solutions required for this emerging market. We willsell and service CiscoPro products through Value-Added Resellers viatwo-tier distribution."
Strengthening the CiscoFusionarchitecture for switched internetworks,Cisco announced the Cisco 7500high-end router series. Additionally, thecompany announced its intent to acquire Grand JunctionInc., to addressthe growing demand for Fast Ethernet and LAN switching to the desktop. TheGrand Junction agreement closed on November 6, 1995.
Extending its offerings in the Enterprise access arena, a number of ISDNproducts aimed at the branch office and professional officeenvironmentswere introduced, and the acquisition of Combinet Inc. wasfinalized. Tofocus on the needs of the Internet access market, Cisco's InternetBusinessUnit was created this quarter as the company acquired InternetJunctionInc., and agreed to purchase privately-held NetworkTranslation,Inc. (NTI). These two acquisitions broaden Cisco's solution set toenable simple, secure Internet access.
Cisco Systems is the leadingglobal supplier of enterprise networkingsolutions, including routers, LAN and ATM switches, dial-up accessservers,and network management software. These products, integrated by the CiscoIOS(TM) software, link geographically dispersed LANs, WANs, and IBMnetworks. Cisco news and product/service information are available atWorld Wide Web site. Cisco isheadquartered in San Jose, California.
Cisco Systems, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)October 29, July 30, 1995 1995 ----------- ---------- (unaudited)AssetsCurrent assets: Cash and equivalent $ 187,521 $ 204,846 Short-term investments 410,747 234,681 Accounts receivable, net 438,480 384,242 Inventories 129,350 71,160 Deferred income taxes 78,304 75,297 Other current assets 45,908 25,743 ---------- --------- Total current assets 1,290,310 995,969
Investments 462,490 403,855Restricted investments 187,560 173,073Property and equipment, net 157,884 136,635Other assets 49,642 47,747 ---------- ---------- Total assets $2,147,886 $1,757,279 ========== ==========
Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $ 340,915 $ 266,173 Income taxes payable 135,846 71,583 ---------- ---------- Total current liabilities 476,761 337,756
Minority interest 40,819 40,792
Shareholders' equity 1,630,306 1,378,731 ---------- ---------- Total liabilities and shareholders' equity $2,147,886 $1,757,279 ========== ==========
Cisco Systems, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands except per-share amounts)
Quarters Ended October 29, October 30, 1995 1994 ----------- ---------- (Unaudited)
Net sales $710,191 $392,925Cost of sales 234,403 127,969 -------- -------- Gross margin 475,788 264,956
Operating expenses: Research and development 62,865 30,048 Sales and marketing 129,011 68,322 General and administrative 25,736 14,915 ------- -------- Total operating expenses 217,612 113,285 ------- --------
Operating income 258,176 151,671
Interest and other income, net 11,819 7,636 ------- --------Income before provision for income taxes 269,995 159,307
Provision for income taxes 101,248 60,537 ------- --------Net income $168,747 $ 98,770 ======== ========
Net income per share $ .59 $ .37 -------- --------
Number of shares used in per-share calculation 286,041 269,661 ======== ========
Posted: Thu Nov 9 16:55:40 PST 1995
